NCERT MCQ ON INTRODUCTION TO ACCOUNTING:


Q1.Which of the following is not a business transaction?
(a) Bought furniture of Rs. 10,000 for business
(b) Paid for salaries of employees Rs. 5,000
(c) Paid sons fees from her personal bank account Rs. 20,000
(d) Paid sons fees from the business Rs. 2,000

Answer: (c) Paid sons fees from her personal bank account Rs. 20,000


Q2.Deepti wants to buy a building for her business today. Which of the following is the relevant data for his decision?
(a) Similar business acquired the required building in 2000 for Rs. 10,00,000
(b) Building cost details of 2003
(c) Building cost details of 1998
(d) Similar building cost in August, 2005 Rs. 25,00,000Answer

Answer: (a) Similar business acquired the required building in 2000 for Rs. 10,00,000


Q3.Which is the last step of accounting as a process of information?
(a) Recording of data in the books of accounts
(b) Preparation of summaries in the form of financial statements
(c) Communication of information
(d) Analysis and interpretation of informationAnswer

Answer: (c) Communication of information


Q4.Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?
(a) Understandability
(b) Relevance
(c) Comparability
(d) ReliabilityAnswer

Answer: (a) Understandability


Q5.Use of common unit of measurement and common format of reporting promotes
(a) Comparability
(b) Understandability
(c) Relevance
(d) ReliabilityAnswer

Answer: (a) Comparability

Complete the following sentences with appropriate words


Q1.Information in financial reports’is based on ……………. transactions.

Answer: economic


Q2.Internal users are the ……………… of the business entity.

Answer: management/employees


Q3.A ………………. would most likely use an entities financial report to determine whether or not the business entity is eligible for a loan.

Answer: creditor


Q4.The Internet has assisted in decreasing the ………………… in issuing financial reports to users.Answer

Answer: time-gap


Q5.………………….. users are groups outside the business entity, who uses the information to make decisions about the business entity.Answer

Answer: external


Q6.Information is said to be relevant if it is ……………….Answer

Answer: free from bias


Q7.he process of accounting starts with …………….. and ends with ……………….Answer

Answer: identifying the transactions, communicating information


Q8.Accounting measures the business transactions in terms of ……………….. units.

Answer: monetary


Q9.Identified and measured economic events should be recording in ……………….. order.

Answer: chronological

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